Shaf
Verified member
When that crash happened a few days back, almost every single investor in the cryptocurrency sphere was caught unawares. Luna was trading fine, the charts and price action were great too.
After the event, many people came out to indicate that there was really giant flaws in the Luna and Anchor protocols that people overlooked which no technical analysis tool could have ever picked up. Of course, this made them wary of investing huge sums of money in Luna and their losses were minimal.
Many coins in cryptocurrency have serious flaws and issues that would be red flags, but technical analysis would not pick them up and the recent events have given more credibility to this fact.
Does this make technical analysis useless completely? No. A combination of both would have and actually did save many people. Anyone who does use technical analysis would know to use strict entry points, exits and stop losses.
Using both fundamental and technical analysis in cryptocurrency is better than using just one.
After the event, many people came out to indicate that there was really giant flaws in the Luna and Anchor protocols that people overlooked which no technical analysis tool could have ever picked up. Of course, this made them wary of investing huge sums of money in Luna and their losses were minimal.
Many coins in cryptocurrency have serious flaws and issues that would be red flags, but technical analysis would not pick them up and the recent events have given more credibility to this fact.
Does this make technical analysis useless completely? No. A combination of both would have and actually did save many people. Anyone who does use technical analysis would know to use strict entry points, exits and stop losses.
Using both fundamental and technical analysis in cryptocurrency is better than using just one.
